58% millennials plan to buy a car in next six months: OLX

Non-millennials key contributors to pre-owned car buying, post-Covid-19. Only 25% of non-millennials have a budget of less than Rs 3 lakh for a new car, compared to 43% among millennials. The report also adds that of all the respondents keen to buy a car in non-metro towns, 70% are interested in pre-owned cars and only 30% are interested in a new car.

By:Updated: Jul 25, 2020 11:10 AM

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According to the Olx Auto Note 4 2020 Edition, a report on the pre-owned automobile ecosystem, non-millennials (over 37 years old) are key contributors to value in the coming months for the preowned automobile industry.“While 58% of millennials (between the ages of 21-37) plan to buy a car in the next six months, 50% non-millennials plan to do the same. Interestingly, 63% of these non-millennials plan to buy a pre-owned car in the next six months, and only 37% plan to buy a new car”, the report noted. Among the millennials, the split is an even 50:50. So, it’s likely that most millennials are first-time buyers of a car, whereas non-millennials already have a personal vehicle and want to have a second one. Owing to higher incomes,non-millennials also have larger budgets. Only 25% of non-millennials have a budget of less than Rs 3 lakh for a new car, compared to 43% among millennials. The report added that of all the respondents keen to buy a car in non-metro towns,70% are interested in pre-owned cars and only 30% are interested in a new car.

“The narrative flips for metro cities, wherein 70% of the respondents are more likely to opt for a new car,” it adds. Sunny Kataria VPAuto, OLX India, said, “While Covid-19 has been a black swan event for the automobile industry at large, we are starting to witness signs of improvement, especially in the pre-owned car industry. Changing preferences, evolving customer needs and an entirely new set of rules for social interactions have given rise to
demand in the non-metro cities.” While certain experts say that due to muted economic sentiment people are holding on to their cars, thereby impacting the supply side in the used-car segment, the report adds existing car owners still plan to sell their cars—79% of those who intended to sell their cars pre-Covid19 were still firm on that plan and 72% of the respondents plan to sell their cars as early as a month after respective lockdown restrictions in their cities are eased.

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